July 22 (Bloomberg) -- HRT Participacoes em Petroleo SA,
the Brazilian oil company that has fallen 64 percent in 2013,
plunged to a record after abandoning its third well this year.

The shares sank 15 percent to 1.71 reais at the close of
trading in Sao Paulo, the lowest level since HRT’s initial
public offering in 2010. Volume was 3.5 times the three-month
daily average. The Ibovespa stock benchmark added 2.5 percent.

HRT is abandoning a well in in Namibia after finding no
oil, according to a regulatory filing on July 19 after the stock
market closed. The company already had left one dry well in the
African country and another in northern Brazil’s Solimoes Basin
in May.

“The question now is whether the company will have money
to keep its exploration plans,” Luana Helsinger, an analyst at
brokerage GBM Brasil, said in a phone interview from Rio de
Janeiro. “HRT is still in a pre-operational stage. It needs to
find hydrocarbons to have some expectation of cash flow.”

UBS AG recommended selling the stock after the announcement
and cut its 12-month price target to 1.80 reais from 5.50 reais.

HRT, based in Rio de Janeiro, also said today it will sell
its air logistics business in Amazonia, which includes six
helicopters, to Erickson Air-Crane for as much as $40 million.

The deal forms part of the company’s effort to strengthen
its cash position, Milton Franke, HRT’s chief executive officer,
wrote in an e-mailed response to questions from Bloomberg News.

“There is an inherent risk in the business, and this is
true of all the companies in the industry,” Franke wrote.
“We’re continuing with our plan, taking measures to strengthen
our cash.”